Foreign Policy

Economic Diplomacy

In the international community, as competition among nations arises, the balance of power in the international arena is changing in an increasingly rapid and complex manner, while uncertainty over the existing international order is growing. Japan will continue to advance efforts to better promote economic diplomacy, which is one of the priority areas of its diplomacy, with a focus on: (a) rule-making and efforts in international organizations to foster expand the free and fair economic order, which includes promoting economic partnership agreements and maintaining and strengthening the multilateral trading system; (b) revitalizing the economy by supporting Japanese companies' overseas business expansion and attracting investment and tourists from overseas; and (c) strengthening economic security.

Maintaining and Reinforcing the Rules-based Free and Fair International Economic Order

(image 1) Securing and promoting Japan’s national interests in global economy

Japan faces a myriad of economic and social challenges ranging from decreasing population, aging society to financial deficit as well as rapidly changing international environment. Against such backdrop, it is critical that Japan advances foreign policy agenda in order to strengthen its economy. Key diplomatic priorities include the Economic Partnership Agreement (EPA), energy and critical minerals, food security and supporting Japanese corporate activities overseas.

Revitalization of Japan’s Economy by Supporting the Overseas Business Expansion of Japanese Companies and Stimulating the Economy through Inbound Demand

(image 2) Creating international rules and promoting policy coordination among countries

The number of Japanese companies operating overseas has been increasing over the medium- to long-term despite being affected by domestic and overseas economic conditions and other circumstances. One of the reasons behind this is that many Japanese companies, which underpin Japan's economic development, have embarked more actively than ever before on overseas expansion with the aim of further cultivating foreign markets. There is considerable momentum behind economic growth abroad, mainly in Asia. To capture this for the Japanese economy, it is becoming increasingly important for the Government to support Japanese companies. Also, Japan continue to revitalize the economy by attracting foreign investment to the Japanese market.

Strengthening Economic Security

In recent years, various challenges have been surfacing in fields that cut across national security and the economy. In light of the emergence of various threats related to economic means, securing Japan’s national interests such as peace, security, and economic prosperity by carrying out economic measures, in other words economic security, is becoming increasingly important. Japan will continue to promote diplomatic efforts related to ensuring economic security.

Basic facts and key information on Japan’s economic diplomacy

Japanese Economy